September 20, 2018

BRD downgraded on non-performing loans

On Monday, Moody’s cut the rating of BRD-Groupe Societe Generale by one notch to as part of a larger downgrade of 5 subsidiaries of the French lender Societe Generale, whose rating was also downgraded by one notch last week, due to volatility risk along with other 14 banking giants. BRD’s long and short term local currency deposits were downgraded by one notch to Baa3, with a negative outlook. Meanwhile, the deposits in the foreign currency were affirmed at Baa3 with a negative outlook on long-term deposits. The bank financial strength rating was cut to D- with negative outlook. This means the subsidiary may require support from the mother bank at times. Moody’s said that BRD’s downgrade was caused by Romania’s sluggish economic recovery that lead to a rapid increase in the non-performing loans (NPL), which climbed to 16.8 % of the total loan portfolio by December 2011, further expanding in the first quarter of 2012. The lender’s profit is also expected to decrease due to higher provisioning of NPLs. This figure remains relatively modest at 43 % according to the rating agency.

Source: Business-Review () What can an iphone spy phone software cell phone spy app do for you

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